Profits were positive in 8 years (at least 9 needed).
- 10y median
- GBP 3.0B
- Worst year
- GBP -7.0B
- Latest · 2025
- GBP 5.8B
# NatWest Group (NWG.LSE) Canonical: https://gigainvestors.com/s/NWG.LSE Analysis as of: 2026-10-16T07:33:47.406Z. Financial observations: FY2015–FY2025. Listing currency: GBX. Reporting currency: GBP. ## Verdict Not a wonderful business Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no. Share price: GBX 674.00 per share; close as of 2026-10-15. Estimated value: low GBX 218.88 per share, central GBX 270.44 per share, high GBX 353.75 per share. Buy at or below the central value GBX 270.44 per share. Valuation as of 2026-10-16T07:33:47.406Z; scenarios are not confidence intervals. Expected annual return: 7.5% at the stated quote. About 7.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points). ## Checklist ### understandable: fail - positive earnings in fewer than 9 of 10 years - Financial history: 10 years - Profitable years in the last ten: 8 - Required profitable years: 9 - Return on common equity variation (informational): 1.56× Chart: Net income; fiscal year observations. - FY2016: GBP -7.0B - FY2017: GBP 752M - FY2018: GBP 1.6B - FY2019: GBP 3.1B - FY2020: GBP -753M - FY2021: GBP 3.0B - FY2022: GBP 3.3B - FY2023: GBP 4.6B - FY2024: GBP 4.8B - FY2025: GBP 5.8B ### moat: fail - Tangible common book per share - Parent-total proxy for preferred equity and common earnings - median return on common equity below threshold - return on tangible common equity below 5% in more than one year - Bank / P&C ROTE, median of available years: 8.4% - Required median return: 12.0% - Return uses tangible common equity: Yes - Bank ROTE, second-lowest year: -2.0% - Years with reported combined ratio: 0 Chart: Return on tangible common equity; fiscal year observations. - FY2016: -16.5% - FY2017: 1.8% - FY2018: 4.1% - FY2019: 8.5% - FY2020: -2.0% - FY2021: 8.4% - FY2022: 11.4% - FY2023: 15.7% - FY2024: 15.1% - FY2025: 19.0% ### economics: fail - Tangible common book per share - Parent-total proxy for preferred equity and common earnings - book value per share plus dividends compounded below 7% annually - Book value per share + reinvested dividends, annualized return: 3.3% - Book return interval: 10 years - Starting book value per share: GBP 4.37 - Ending book value per share: GBP 3.80 Chart: Annual book + dividend return; fiscal year observations. - FY2016: -10.7% - FY2017: -1.3% - FY2018: -5.1% - FY2019: 2.9% - FY2020: 1.8% - FY2021: 2.9% - FY2022: 1.5% - FY2023: -6.1% - FY2024: 52.2% - FY2025: 5.7% ### management: fail - Tangible common book per share - Parent-total proxy for preferred equity and common earnings - book per share gain below retained common earnings per share - Diluted shares, 10-year annual growth: -2.8% - Diluted shares, 5-year annual growth: -6.4% - Share growth excluding flagged crisis recapitalisations: -2.8% - Five-year share growth excluding flagged crisis recapitalisations: -6.4% - Flagged crisis recapitalisations: 0 - Book value created per share: GBP -0.58 - Earnings retained per share after dividends and buybacks: GBP -1.16 ### accounting: pass - Financial accounting warning count: 0 - Known restatement years: 0 ## Holders - [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts. ## Price story The price assumes profits grow 8.3% a year forever · net income +21.4% Story as of 2026-10-16T09:59:57.760Z; price observation 2026-10-15. The price assumes profits grow 8.3% a year forever ### Net income · FY2025 net income +21.4%; source https://filings.xbrl.org/2138005O9XJIJN4JPN90/2026-01-31/ESEF/GB/0/2138005O9XJIJN4JPN90-2025-12-31/reports/2138005O9XJIJN4JPN90-2025-12-31-T01.html; observed 2026-04-29. - FY2016: GBP -7.0B - FY2017: GBP 752M - FY2018: GBP 1.6B - FY2019: GBP 3.1B - FY2020: GBP -753M - FY2021: GBP 3.0B - FY2022: GBP 3.3B - FY2023: GBP 4.6B - FY2024: GBP 4.8B - FY2025: GBP 5.8B ## Owner memo Memo as of 2026-10-16T08:06:05.509Z. ### How it makes money Operates in regional banking; annual sales are GBP 29.5 billion. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2025: revenue 29478000000. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); NWG.LSE: NatWest Group plc, together with its subsidiaries, provides banking and financial products and services in the United Kingdom and internationally. It operates through the Retail Banking, Private Banking, and Commercial & Institutional segments. The Retail Banking segment offers a range of banking products and related financial services, such as current accounts, mortgages, personal unsecured lending, and personal deposits, as well as mobile and online banking services. Its Private Banking segment provides banking, lending, and wealth management products for high-net-worth individuals and their business interests. The Commercial & Institutional segment consists of customer businesses under business banking, commercial mid-market, and corporates and institutions; and offers banking operations services in the Channel Islands, Isle of Man, Gibraltar, and Luxembourg, as well as products and solutions for businesses comprising start-ups, corporates, and large institutions. The company was formerly known as The Royal Bank of Scotland Group plc and changed its name to NatWest Group plc in July 2020. NatWest Group plc was founded in 1727 and is headquartered in Edinburgh, the United Kingdom. ### Why customers stay It earns 8.4% on shareholders’ money, excluding intangible assets. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); 10-year return on tangible equity observations [[2016,-0.16508818153765814],[2017,0.017996027472658962],[2018,0.041462167689161555],[2019,0.08484766418415708],[2020,-0.02023921515925279],[2021,0.08411028426424885],[2022,0.11371374097780199],[2023,0.15692380597772737],[2024,0.15118695296265977],[2025,0.18971238938053098]]; median 0.08447897422420297. ROIC follows the displayed moat series; financial companies use return on tangible equity. ### Where the cash goes Paid dividends in 10 of 10 years; bought back GBP 2.6 billion of shares. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Dividend observations: [[2016,504000000],[2017,612000000],[2018,803000000],[2019,3424000000],[2020,381000000],[2021,1016000000],[2022,3205000000],[2023,1703000000],[2024,1800000000],[2025,2376000000]]. Zero only counted when supported by a complete cash-flow statement. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2025: cash repurchases 2558000000 GBP. ### Are managers owners Insiders own 0.1% of the company. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); NWG.LSE SharesStats.PercentInsiders = 0.055999999999999994 percentage points; cache date 2026-10-16. ### What the price says The price assumes profits grow 8.3% a year forever. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Price 674; FX 100; original perpetual distributable cash 0.11482328270754448; discount 0.1; growth 0.08296390464279756. Same book-value model and 4× ceiling; no ten-year operating fade applies. Closing-price date 2026-10-15. ## Monthly share-price history (GBX per share) - 2016-11: GBX 209.25 per share - 2016-12: GBX 241.88 per share - 2017-01: GBX 238.86 per share - 2017-02: GBX 256.09 per share - 2017-03: GBX 260.72 per share - 2017-04: GBX 285.82 per share - 2017-05: GBX 280.00 per share - 2017-06: GBX 266.22 per share - 2017-07: GBX 267.72 per share - 2017-08: GBX 271.28 per share - 2017-09: GBX 288.94 per share - 2017-10: GBX 304.23 per share - 2017-11: GBX 297.88 per share - 2017-12: GBX 299.38 per share - 2018-01: GBX 309.83 per share - 2018-02: GBX 288.29 per share - 2018-03: GBX 278.71 per share - 2018-04: GBX 290.98 per share - 2018-05: GBX 296.26 per share - 2018-06: GBX 275.80 per share - 2018-07: GBX 275.05 per share - 2018-08: GBX 259.86 per share - 2018-09: GBX 269.23 per share - 2018-10: GBX 254.58 per share - 2018-11: GBX 234.98 per share - 2018-12: GBX 233.37 per share - 2019-01: GBX 259.43 per share - 2019-02: GBX 286.14 per share - 2019-03: GBX 266.00 per share - 2019-04: GBX 258.03 per share - 2019-05: GBX 230.14 per share - 2019-06: GBX 236.71 per share - 2019-07: GBX 233.69 per share - 2019-08: GBX 199.72 per share - 2019-09: GBX 223.57 per share - 2019-10: GBX 229.06 per share - 2019-11: GBX 243.60 per share - 2019-12: GBX 258.78 per share - 2020-01: GBX 235.09 per share - 2020-02: GBX 192.39 per share - 2020-03: GBX 121.58 per share - 2020-04: GBX 119.05 per share - 2020-05: GBX 118.84 per share - 2020-06: GBX 130.95 per share - 2020-07: GBX 114.15 per share - 2020-08: GBX 121.48 per share - 2020-09: GBX 114.21 per share - 2020-10: GBX 133.75 per share - 2020-11: GBX 166.49 per share - 2020-12: GBX 180.55 per share - 2021-01: GBX 158.95 per share - 2021-02: GBX 198.37 per share - 2021-03: GBX 211.35 per share - 2021-04: GBX 211.72 per share - 2021-05: GBX 222.92 per share - 2021-06: GBX 218.83 per share - 2021-07: GBX 217.97 per share - 2021-08: GBX 229.49 per share - 2021-09: GBX 242.20 per share - 2021-10: GBX 238.11 per share - 2021-11: GBX 228.95 per share - 2021-12: GBX 243.06 per share - 2022-01: GBX 261.05 per share - 2022-02: GBX 247.37 per share - 2022-03: GBX 232.51 per share - 2022-04: GBX 234.77 per share - 2022-05: GBX 245.75 per share - 2022-06: GBX 235.09 per share - 2022-07: GBX 267.72 per share - 2022-08: GBX 246.45 per share - 2022-09: GBX 225.90 per share - 2022-10: GBX 234.80 per share - 2022-11: GBX 261.90 per share - 2022-12: GBX 265.20 per share - 2023-01: GBX 308.00 per share - 2023-02: GBX 292.30 per share - 2023-03: GBX 263.60 per share - 2023-04: GBX 262.00 per share - 2023-05: GBX 259.60 per share - 2023-06: GBX 240.80 per share - 2023-07: GBX 244.30 per share - 2023-08: GBX 230.40 per share - 2023-09: GBX 235.70 per share - 2023-10: GBX 178.20 per share - 2023-11: GBX 207.90 per share - 2023-12: GBX 219.40 per share - 2024-01: GBX 225.20 per share - 2024-02: GBX 239.10 per share - 2024-03: GBX 265.50 per share - 2024-04: GBX 303.50 per share - 2024-05: GBX 315.00 per share - 2024-06: GBX 311.80 per share - 2024-07: GBX 368.10 per share - 2024-08: GBX 345.20 per share - 2024-09: GBX 343.90 per share - 2024-10: GBX 367.70 per share - 2024-11: GBX 402.70 per share - 2024-12: GBX 402.10 per share - 2025-01: GBX 433.10 per share - 2025-02: GBX 478.80 per share - 2025-03: GBX 451.80 per share - 2025-04: GBX 478.20 per share - 2025-05: GBX 524.60 per share - 2025-06: GBX 511.40 per share - 2025-07: GBX 527.00 per share - 2025-08: GBX 510.60 per share - 2025-09: GBX 521.60 per share - 2025-10: GBX 584.00 per share - 2025-11: GBX 632.20 per share - 2025-12: GBX 651.80 per share - 2026-01: GBX 665.20 per share - 2026-02: GBX 619.00 per share - 2026-03: GBX 553.20 per share - 2026-04: GBX 585.20 per share - 2026-05: GBX 599.40 per share - 2026-06: GBX 667.00 per share - 2026-07: GBX 705.80 per share - 2026-08: GBX 679.40 per share - 2026-09: GBX 688.40 per share - 2026-10: GBX 667.20 per share ## Annual estimated value (GBX per share) - FY2022: low GBX 8.51 per share, central GBX 9.40 per share, high GBX 10.49 per share - FY2023: low GBX 57.58 per share, central GBX 65.38 per share, high GBX 75.61 per share - FY2024: low GBX 169.07 per share, central GBX 200.60 per share, high GBX 246.59 per share - FY2025: low GBX 267.45 per share, central GBX 330.44 per share, high GBX 432.24 per share Historical values use today's bond yield for every fiscal year Historical values use today's FX rate into trading currency for every fiscal year Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates Prior published observations retained from 2026-10-15T06:39:33.335Z where newer inputs omit a numeric field or fiscal period. ## Sources [Original ESEF filing](https://filings.xbrl.org/2138005O9XJIJN4JPN90/2026-01-31/ESEF/GB/0/2138005O9XJIJN4JPN90-2025-12-31/reports/2138005O9XJIJN4JPN90-2025-12-31-T01.html); period 2026-01-31, filed 2026-04-29. Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.
NWG · LSE
FTSE 100 · STOXX Europe 600
Not a wonderful business
3 quality tests fail. A lower price would not fix the business.
Profits were positive in 8 years (at least 9 needed).
Earned a median 8.4% on tangible equity (minimum 12%), and the second-worst year -2% (minimum 5%).
Book value plus dividends grew 3.3% a year (minimum 7%).
Book value gained -0.58 per share against 0 kept (must cover the amount kept).
0 accounting warnings were found (none allowed).
Profit record · pass 2 loss years in 10 (at most 2), three-year average earnings per share 0.58 GBP.
| Value range | GBX 218.88 – GBX 353.75 |
|---|---|
| Buy at or below | Central value GBX 270.44 |
| Discount to value | 1 − 674.00 / 270.44 = -149.2% |
| Return / year | About 7.5% a year at today's price (required return 10.0%) |
| Cash-flow inputs | Book GBX 310.60/share; ROE 9.5%; first payout GBX 11.48/share, growing 5.8% perpetually (4× book payout cap applied). |
| Required return | 10.0% / year, earned by construction at the central value |